Further to the Company's announcement of 29 July 2005, the Company advises that it is continuing discussions with Peak Resources Limited of Hong Kong ("Peak Resources") with a view to selling all or part of the Company's Ukraine assets. The terms of any acquisition are likely to be different to those outlined in the previous announcement.  Peak Resources has unilaterally extended its option in accordance with its purported terms by one month to 30 September 2005, although the Company continues to assert that it considers the option to be invalid and unenforceable. The Company will make an announcement on completion of these discussions.

For further information please contact:

Buchanan Communications Tel: +44 (0) 207 466 5000
Bobby Morse